BILL NUMBER: SB 1231	CHAPTERED  10/10/99

	CHAPTER   941
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 2, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN SENATE   APRIL 12, 1999

INTRODUCED BY   Committee on Revenue and Taxation (Senators Chesbro
(Chair), Alpert, Bowen, Burton, Johnston, McPherson, and Poochigian)

                        FEBRUARY 26, 1999

   An act to amend Section 25205.9 of the Health and Safety Code, to
amend Section 42886 of, and to add Section 42886.1 to, the Public
Resources Code, and to amend Sections 63.1, 66, 75.51, 402.9, 531.2,
531.8, 602, 1622.6, 1624, 1624.05, 2512, 2610.5, 2613, 2910.1, 3437,
3692, 4222.5, 4837.5, 4985, 8877, 30103.5, 30188, 30436, 38631,
43010.1, 43011.1, and 50159 of, to add Sections 69.4, 168.5, 237,
1612.5, 1612.7, 1624.3, 1636.2, and 1636.5, and to repeal Section
3440 of, the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1231, Committee on Revenue and Taxation.  Taxation.
   The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property.  For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.  The California Constitution also excludes
from the terms "purchased" and "change in ownership" the purchase or
transfer of the principal residence of the transferor, or the
purchase or transfer of the first $1,000,000 of all other real
property, in the case of a purchase or transfer between parents and
their children, as defined by the Legislature.
   Statutory law that implements this constitutional exclusion
requires an application for exclusion to be filed within certain
specified time periods.
   This bill would clarify the filing requirements for claiming an
exclusion in the circumstance where the property has not been
transferred to a 3rd party.  By imposing new duties upon local
assessors in the processing of exclusion claims, this bill would
impose a state-mandated local program.
   Existing law provides that, unless otherwise provided in the
California Constitution, all property is taxable and shall be
assessed at the same percentage of fair market value, and further
requires that all property so assessed shall be taxed in proportion
to its full value.  The taxable value of real property may not be
increased by more than 2% annually unless there is a change in
ownership or new construction.  Provisions of the California
Constitution enacted by initiative in 1998 permit persons whose
property was affected by contamination to transfer the base assessed
value of their property to replacement property or to have repair or
replacement construction excluded from reappraisal as "new
construction."
   This bill would enact statutory provisions to implement the
initiative and would establish a method for determining base year
value for transfers under these provisions.
   The California Constitution permits the Legislature to exempt from
taxation property that is used exclusively for religious, hospital,
or charitable purposes and owned or held in trust by nonprofit
entities.
   This bill would create an exemption under the above constitutional
provisions for low-income housing owned and operated by a housing
entity of a federally designated Indian tribe.
   Existing law prohibits the assessor from considering as income
certain subsidy payments made by the federal government to a lender
on certain property when valuing that property for persons of low and
moderate income that is financed under Section 236 of the federal
National Housing Act.
   This bill would make those provisions also applicable to property
financed under Section 515 of the federal National Housing Act.
   The Timber Yield Tax Law at one time required the State Board of
Control to approve whether any amount in excess of $50,000 had been
illegally determined to be in excess of the amount legally due, prior
to the State Board of Equalization authorizing the cancellation of
the amount upon its records.
   This bill would eliminate the reference to any amount in excess of
$50,000 with respect to that prior approval requirement of the State
Board of Control.
   Existing law requires every generator of hazardous waste to pay an
annual generator fee to the State Board of Equalization but exempts,
from those fees hazardous materials that are recycled and used
onsite, and certain aqueous wastes.
   Existing law provides that a generator who pays a hazardous waste
generator inspection fee to a certified unified program agency is
eligible for a refund of the generator fee, under specified
conditions.
   This bill would revise the computation of the maximum permissible
refund.
   Under existing law, tire recycling fees of $0.25 per tire are
required to be paid to the State Board of Equalization.
   This bill would revise the timeframe for reporting and paying
these fees.
   Under the Use Fuel Tax Law, the State Board of Equalization is
authorized to relieve various penalties imposed pursuant to that law
under specified circumstances.
   This bill would make technical corrections in these provisions.
   The existing Cigarette and Tobacco Products Tax Law exempts from
taxation the sale or transfer of untaxed cigarettes to law
enforcement agencies for use in criminal investigations.
   This bill would also provide an exemption from the tax for tobacco
products under similar circumstances, and would also require
wholesalers to report to the State Board of Equalization on
information regarding purchases, sales, and inventory of tobacco
products in the same manner as they are required to report that
information to the board regarding cigarettes.
   The bill would also permit cigarettes in packages that fail to
conform to federal labelling requirements to be forfeited to the
state upon seizure by the board.
   Under existing law, the State Board of Equalization administers
and collects both occupational and childhood lead poisoning
prevention fees.
   This bill would make clarifying changes in references for
"department" and "director" with regard to the childhood lead
poisoning prevention fee to mean the State Department of Health
Services and the State Director of Health Services in order to
conform those provisions with the occupational lead poisoning
prevention fee provisions.
   Under the existing Underground Storage Tank Maintenance Fee Law,
the State Board of Equalization is authorized to disclose otherwise
confidential information obtained from the lessee or operator of an
underground storage tank only to the feepayer, and only to a limited
extent.
   This bill would authorize the board to disclose the information
obtained from the person who sold or provided petroleum to the lessee
or operator of the underground storage tank.
   Existing property tax law requires alternative assessment appeals
board procedures to determine assessment appeals filed by assessment
appeals boards or alternate board members.
   This bill would require these alternative procedures to determine
assessment appeals filed by employees of the clerk of the county
board of equalization or employees of assessment appeals boards when
representing themselves or family members, or by members of the
assessment appeals board or alternate board members when representing
family members, as specified, and would preclude these employees and
board members from representing, for compensation, applicants who
have filed assessment appeals.
   Under existing property tax law, a remittance to a taxing agency
is deemed to be received on the date shown by the post office
cancellation mark under specified conditions.
   This bill would also permit payments to be made through
independent delivery services under specified conditions, and would
clarify the postal provisions regarding payments on property on the
secured roll.
   Existing property tax law requires the tax collector to mail a tax
bill for every property on the secured roll and authorizes the tax
collector to mail a tax bill on assessments on the unsecured roll.
   This bill would permit the tax collector to electronically
transmit these tax bills.
   Existing property tax law requires the tax collector to transmit a
statement to the Controller after a declaration of default showing
the amount in default and the property affected.
   This bill would repeal that provision.
   Existing law requires the tax collector to take various actions
regarding the sale of tax-defaulted property, and requires the
original notice to indicate that any parcel remaining unsold may be
resold within a 90-day period.
   This bill would specify the types of notices in which that
provision would be required.
   Existing property tax law permits, at the election of the
assessee, the installment payment of delinquent taxes on
tax-defaulted property under an installment payment plan.  Existing
law permits a one-year deferral of payment under an existing
installment plan if the county in which the property is located was
declared by the Governor to be in a state of disaster as a result of
the fires which occurred in 1987.
   This bill would permit a one-year deferral of payment under an
existing installment plan if the county was declared by the Governor
to be in a state of emergency or disaster due to a major misfortune
or calamity, and specified conditions are met.
   Existing property tax law provides, as specified, for the payment
of escape assessments for prior fiscal years over a 4-year period.
However, the balance of the tax to be paid becomes immediately due
and payable under specified circumstances, including an installment
not being paid timely or a default.
   This bill would authorize the tax collector to reinstate the
installment account under specified conditions if the tax collector
is convinced that the missed payment was not due to the fault of the
assessee.
   The bill would also make technical or clarifying changes to the
provisions regarding the making of escape assessments, the contents
of the local property tax roll, the place of payment of taxes, the
accrual of interest on escape assessments and under assessments, and
the cancellation of fees and penalties due to errors made by the tax
collector, auditor, or assessor.
   The bill would also permit any document that is required by the
property tax law to be acknowledged by the county clerk to be
acknowledged by a notary public or other county official under
specified conditions.
   The bill would also make various technical and clarifying changes
to certain property tax provisions.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25205.9 of the Health and Safety Code is
amended to read:
   25205.9.  (a) On or before June 30 of each year, the department
shall determine if there are surplus funds in the Hazardous Waste
Control Account and shall, upon appropriation by the Legislature,
allocate these surplus funds to pay refunds in the following order of
priority:
   (1) To pay refunds to generators pursuant to subdivision (c).
   (2) To pay refunds to generators pursuant to subdivision (d).
However, the department shall not pay refunds pursuant to subdivision
(d) until all applications for refunds pursuant to subdivision (c)
have first been paid.
   (b) The department shall certify the amount of the surplus in the
Hazardous Waste Control Account to the board and shall direct the
board to pay refunds to generators pursuant to subdivisions (c) and
(d) to the extent funds permit.  If funds are not sufficient to pay
all the refunds for which the board receives applications pursuant to
subdivision (h) of Section 25205.5, the department shall direct the
board to pay refunds pursuant to subdivision (c) on a pro rata basis.
  If funds are sufficient to pay all refunds for which applications
are received pursuant to subdivision (h) of Section 25205.5 but not
sufficient to pay all refunds for which applications were received by
the board pursuant to subdivision (i) of Section 25205.5, the
department shall direct the board to pay refunds pursuant to
subdivision (d) on a pro rata basis.
   (c) (1) If the department certifies that there are sufficient
funds to do so, the board shall issue refunds, in the manner directed
by the department pursuant to subdivision (b), to hazardous waste
generators who are eligible for refunds pursuant to paragraph (1) of
subdivision (h) of Section 25205.5.
   (2) The refund made to a generator pursuant to this subdivision
shall not exceed the fee paid by the generator pursuant to Section
25205.5, or exceed the hazardous waste generator inspection fee paid
to the certified unified program agency for the previous calendar
year, whichever is less.
   (3) The board may issue refunds pursuant to this section only if
the department certifies, pursuant to subdivision (b), that funds for
these refunds are available.
   (d) (1) If the department certifies that there are sufficient
funds to do so, the board shall issue refunds, in the manner directed
by the department pursuant to subdivision (b), to hazardous waste
generators who are eligible for refunds pursuant to paragraph (1) of
subdivision (i) of Section 25205.5.
   (2) The refund made to a generator pursuant to this subdivision
shall be equal to the difference between the amount of the generator
fee paid by the generator pursuant to Section 25205.5 and the amount
the generator would have paid if the amount of hazardous materials
transferred to an offsite facility for recycling had been deducted
from the total tonnage of hazardous waste generated at the generator'
s site.  However, if a generator receives a refund pursuant to
subdivision (c), the generator may not receive a refund pursuant to
this subdivision that exceeds the difference between the amount of
the generator fee paid pursuant to Section 25205.5 and the amount of
the refund received pursuant to subdivision (c).
   (3) The board may issue refunds pursuant to this subdivision only
if the department certifies, pursuant to subdivision (b), that funds
for these refunds are available.
   (e) For purposes of this section, "surplus" means the amount in
the Hazardous Waste Control Account on June 30 of each year that is
in excess of the reserve required by subdivision (k) of Section
25174.
  SEC. 2.  Section 42886 of the Public Resources Code is amended to
read:
   42886.  (a) The fees remitted pursuant to Section 42885 are due
and payable quarterly on or before the 15th day of the month
following each quarterly or yearly reporting period.
   (b) A penalty of 20 percent of any fees not paid when due shall be
assessed and collected.
  SEC. 3.  Section 42886.1 is added to the Public Resources Code, to
read:
   42886.1.  (a) The board if it deems it necessary in order to
ensure payment to or facilitate the collection by the state of the
amount of fees, may require returns and payment of the amount of fees
for a yearly period.
   (b) On or before the 15th day of the month following each
designated yearly period, a return for the preceding designated
yearly period shall be filed with the board in the form as the board
may prescribe.
  SEC. 4.  Section 63.1 of the Revenue and Taxation Code is amended
to read:
   63.1.  (a) Notwithstanding any other provision of this chapter, a
change in ownership shall not include the following purchases or
transfers for which a claim is filed pursuant to this section:
   (1) The purchase or transfer of real property which is the
principal residence of an eligible transferor in the case of a
purchase or transfer between parents and their children.
   (2) The purchase or transfer of the first one million dollars
($1,000,000) of full cash value of all other real property of an
eligible transferor in the case of a purchase or transfer between
parents and their children.
   (3) (A) Subject to subparagraph (B), the purchase or transfer of
real property described in paragraphs (1) and (2) of subdivision (a)
occurring on or after March 27, 1996, between grandparents and their
grandchild or grandchildren, if all of the parents of that grandchild
or those grandchildren, who qualify as the children of the
grandparents, are deceased as of the date of purchase or transfer.
   (B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1) of subdivision (a).  The full cash value of
any real property, other than a principal residence, that was
transferred to the grandchild or grandchildren pursuant to a purchase
or transfer that was excludable pursuant to paragraph (2) of
subdivision (a) and the full cash value of a principal residence that
fails to qualify for exclusion as a result of the preceding sentence
shall be included in applying, for purposes of paragraph (2) of
subdivision (a), the one million dollar ($1,000,000) full cash value
limit specified in paragraph (2) of subdivision (a).
   (b) (1) For purposes of paragraph (1) of subdivision (a),
"principal residence" means a dwelling for which a homeowners'
exemption or a disabled veterans' residence exemption has been
granted in the name of the eligible transferor.  "Principal residence"
includes only that portion of the land underlying the principal
residence that consists of an area of reasonable size that is used as
a site for the residence.
   (2) For purposes of paragraph (2) of subdivision (a), the one
million dollar ($1,000,000) exclusion shall apply separately to each
eligible transferor with respect to all purchases by and transfers to
eligible transferees on and after November 6, 1986, of real
property, other than the principal residence, of that eligible
transferor.  The exclusion shall not apply to any property in which
the eligible transferor's interest was received through a transfer,
or transfers, excluded from change in ownership by the provisions of
either subdivision (f) of Section 62 or subdivision (b) of Section
65, unless the transferor qualifies as an original transferor under
subdivision (b) of Section 65.  In the case of any purchase or
transfer subject to this paragraph involving two or more eligible
transferors, the transferors may elect to combine their separate one
million dollar ($1,000,000) exclusions and, upon making that
election, the combined amount of their separate exclusions shall
apply to any property jointly sold or transferred by the electing
transferors, provided that in no case shall the amount of full cash
value of real property of any one eligible transferor excluded under
this election exceed the amount of the transferor's separate unused
exclusion on the date of the joint sale or transfer.
   (c) As used in this section:
   (1) "Purchase or transfer between parents and their children"
means either a transfer from a parent or parents to a child or
children of the parent or parents or a transfer from a child or
children to a parent or parents of the child or children.  For
purposes of this section, the date of any transfer between parents
and their children under a will or intestate succession shall be the
date of the decedent's death, if the decedent died on or after
November 6, 1986.
   (2) "Purchase or transfer of real property between grandparents
and their grandchild or grandchildren" means a purchase or transfer
on or after March 27, 1996, from a grandparent or grandparents to a
grandchild or grandchildren if all of the parents of that grandchild
or those grandchildren who qualify as the children of the
grandparents are deceased as of the date of the transfer.  For
purposes of this section, the date of any transfer between
grandparents and their grandchildren under a will or by intestate
succession shall be the date of the decedent's death.
   (3) "Children" means any of the following:
   (A) Any child born of the parent or parents, except a child, as
defined in subparagraph (D), who has been adopted by another person
or persons.
   (B) Any stepchild of the parent or parents and the spouse of that
stepchild while the relationship of stepparent and stepchild exists.
For purposes of this paragraph, the relationship of stepparent and
stepchild shall be deemed to exist until the marriage on which the
relationship is based is terminated by divorce, or, if the
relationship is terminated by death, until the remarriage of the
surviving stepparent.
   (C) Any son-in-law or daughter-in-law of the parent or parents.
For the purposes of this paragraph, the relationship of parent and
son-in-law or daughter-in-law shall be deemed to exist until the
marriage on which the relationship is based is terminated by divorce
or, if the relationship is terminated by death, until the remarriage
of the surviving son-in-law or daughter-in-law.
   (D) Any child adopted by the parent or parents pursuant to
statute, other than an individual adopted after reaching the age of
18 years.
   (4) "Grandchild" or "grandchildren" means any child or children of
the child or children of the grandparent or grandparents.
   (5) "Full cash value" means full cash value, as defined in Section
2 of Article XIIIA of the California Constitution and Section 110.1,
with any adjustments authorized by those sections, and the full
value of any new construction in progress, determined as of the date
immediately prior to the date of a purchase by or transfer to an
eligible transferee of real property subject to this section.
   (6) "Eligible transferor" means a grandparent, parent, or child of
an eligible transferee.
   (7) "Eligible transferee" means a parent, child, or grandchild of
an eligible transferor.
   (8) "Real property" means real property as defined in Section 104.
Real property does not include any interest in a legal entity.
   (9) "Transfer" includes, and is not limited to, any transfer of
the present beneficial ownership of property from an eligible
transferor to an eligible transferee through the medium of an inter
vivos or testamentary trust.
   (10) "Social security number" also includes a taxpayer
identification number issued by the Internal Revenue Service in the
case in which the taxpayer is a foreign national who cannot obtain a
social security number.
   (d) (1) The exclusions provided for in subdivision (a) shall not
be allowed unless the eligible transferee, the transferee's legal
representative, or the executor or administrator of the transferee's
estate files a claim with the assessor for the exclusion sought and
furnishes to the assessor each of the following:
   (A) A written certification by the transferee, the transferee's
legal representative, or the executor or administrator of the
transferee's estate made under penalty of perjury that the transferee
is a grandparent, parent, child, or grandchild of the transferor.
In the case of a grandparent-grandchild transfer, the written
certification shall also include a certification that all the parents
of the grandchild or grandchildren who qualify as children of the
grandparents were deceased as of the date of the purchase or transfer
and that the grandchild or grandchildren did or did not receive a
principal residence excludable under paragraph (1) of subdivision (a)
from the deceased parents, and that the grandchild or grandchildren
did or did not receive real property other than a principal residence
excludable under paragraph (2) of subdivision (a) from the deceased
parents.  The claimant shall provide legal substantiation of any
matter certified pursuant to this subparagraph at the request of the
county assessor.
   (B) A copy of a written certification by the transferor, the
transferor's legal representative, or the executor or administrator
of the transferor's estate made under penalty of perjury that the
transferor is a grandparent, parent, or child of the transferee.  The
written certification shall also include either or both of the
following:
   (i) If the purchase or transfer of real property includes the
purchase or transfer of residential real property, a certification
that the residential real property is or is not the transferor's
principal residence.
   (ii) If the purchase or transfer of real property includes the
purchase or transfer of real property other than the transferor's
principal residence, a certification that other real property of the
transferor that is subject to this section has or has not been
previously sold or transferred to an eligible transferee, the total
amount of full cash value, as defined in subdivision (c), of any real
property subject to this section that has been previously sold or
transferred by that transferor to eligible transferees, the location
of that real property, the social security number of each eligible
transferor, and the names of the eligible transferees of that
property.
   (2) If the full cash value of the real property purchased by or
transferred to the transferee exceeds the permissible exclusion of
the transferor or the combined permissible exclusion of the
transferors, in the case of a purchase or transfer from two or more
joint transferors, taking into account any previous purchases by or
transfers to an eligible transferee from the same transferor or
transferors, the transferee shall specify in his or her claim the
amount and the allocation of the exclusion he or she is seeking.
Within any appraisal unit, as determined in accordance with
subdivision (d) of Section 51 by the assessor of the county in which
the real property is located, the exclusion shall be applied only on
a pro rata basis, however, and shall not be applied to a selected
portion or portions of the appraisal unit.
   (e) (1) The State Board of Equalization shall design the form for
claiming eligibility.  Except as provided in paragraph (2), any claim
under this section shall be filed:
   (A) For transfers of real property between parents and their
children occurring prior to September 30, 1990, within three years
after the date of the purchase or transfer of real property for which
the claim is filed.
   (B) For transfers of real property between parents and their
children occurring on or after September 30, 1990, and for the
purchase or transfer of real property between grandparents and their
grandchildren occurring on or after March 27, 1996, within three
years after the date of the purchase or transfer of real property for
which the claim is filed, or prior to transfer of the real property
to a third party, whichever is earlier.
   (C) Notwithstanding subparagraphs (A) and (B), a claim shall be
deemed to be timely filed if it is filed within six months after the
date of mailing of a notice of supplemental or escape assessment,
issued as a result of the purchase or transfer of real property for
which the claim is filed.
   (2) In the case in which the real property subject to purchase or
transfer has not been transferred to a third party, a claim for
exclusion under this section that is filed subsequent to the
expiration of the filing periods set forth in paragraph (1) shall be
considered by the assessor, subject to all of the following
conditions:
   (A) Any exclusion granted pursuant to that claim shall apply
commencing with the lien date of the assessment year in which the
claim is filed.
   (B) Under any exclusion granted pursuant to that claim, the
adjusted full cash value of the subject real property in the
assessment year described in subparagraph (A) shall be the adjusted
base year value of the subject real property in the assessment year
in which the excluded purchase or transfer took place, factored to
the assessment year described in subparagraph (A) for both of the
following:
   (i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
   (ii) Any subsequent new construction occurring with respect to the
subject real property.
   (3) (A) Unless otherwise expressly provided, the provisions of
this subdivision shall apply to any purchase or transfer of real
property that occurred on or after November 6, 1986.
   (B) Paragraph (2) shall apply to purchases or transfers between
parents and their children that occurred on or after November 6,
1986, and to purchases or transfers between grandparents and their
grandchildren that occurred on or after March 27, 1996.
   (4) For purposes of this subdivision, a transfer of real property
to a parent or child of the transferor shall not be considered a
transfer to a third party.
   (f) The assessor shall report quarterly to the State Board of
Equalization all purchases or transfers, other than purchases or
transfers involving a principal residence, for which a claim for
exclusion is made pursuant to subdivision (d).  Each report shall
contain the assessor's parcel number for each parcel for which the
exclusion is claimed, the amount of each exclusion claimed, the
social security number of each eligible transferor, and any other
information the board shall require in order to monitor the one
million dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a).
   (g) This section shall apply to both voluntary transfers and
transfers resulting from a court order or judicial decree.  Nothing
in this subdivision shall be construed as conflicting with paragraph
(1) of subdivision (c) or the general principle that transfers by
reason of death occur at the time of death.
   (h) (1) Except as provided in paragraph (2), this section shall
apply to purchases and transfers of real property completed on or
after November 6, 1986, and shall not be effective for any change in
ownership, including a change in ownership arising on the date of a
decedent's death, that occurred prior to that date.
   (2) This section shall apply to purchases or transfers of real
property between grandparents and their grandchildren occurring on or
after March 27, 1996, and, with respect to purchases or transfers of
real property between grandparents and their grandchildren, shall
not be effective for any change in ownership, including a change in
ownership arising on the date of a decedent's death, that occurred
prior to that date.
  SEC. 5.  Section 66 of the Revenue and Taxation Code is amended to
read:
   66.  Change in ownership does not include any of the following:
   (a) The creation, vesting, transfer, distribution, or termination
of a participant's or beneficiary's interest in an employee benefit
plan.
   (b) Any contribution of real property to an employee benefit plan.

   (c) Any acquisition by an employee benefit plan of the stock of
the employer corporation pursuant to which the employee benefit plan
obtains direct or indirect ownership or control of more than 50
percent of the voting stock of the employer corporation.
   As used in this section, the terms "employer," "employee benefit
plan," "participant," and "beneficiary" shall be defined as they are
defined in the Employee Retirement Income Security Act of 1974.
  SEC. 6.  Section 69.4 is added to the Revenue and Taxation Code, to
read:
   69.4.  (a) Notwithstanding any other provision of law, pursuant to
the authority of subdivision (i) of Section 2 of Article XIIIA of
the California Constitution, the base year value of qualified
contaminated property may be transferred to a replacement property
that is acquired or newly constructed as a replacement for the
contaminated property, pursuant to subparagraph (A) of paragraph 1 of
that subdivision, or if the remediation of the contamination
requires the repair or replacement of contaminated property, that
repair or replacement shall not be considered "new construction,"
pursuant to subparagraph (B) of that subdivision.
   (b) The base year value of the original property shall be the base
year value of the original property as determined in accordance with
Section 110.1, with the inflation factor adjustments permitted by
subdivision (f) of Section 110.1.  The base year value of the
original property shall also include any inflation factor adjustments
permitted by subdivision (f) of Section 110.1 up to the date the
replacement property is acquired or newly constructed, regardless of
whether the claimant continued to own the original property during
this entire period.  The base year or years used to compute the base
year value of the original property shall be deemed to be the base
year or years of any property to which that base year value is
transferred pursuant to this section.
  SEC. 7.  Section 75.51 of the Revenue and Taxation Code is amended
to read:
   75.51.  The tax collector shall mail or electronically transmit a
supplemental tax bill to the assessee, including the following
information either on the bill or in a separate statement
accompanying the bill:
   (a) The information supplied by the assessor to the auditor
pursuant to Section 75.40.
   (b) The amount of the supplemental taxes due.
   (c) The date the notice is mailed.
   (d) The date on which the taxes will become delinquent and the
penalties for delinquency.
   (e) A statement that the supplemental taxes were determined in
accordance with Article XIIIA of the California Constitution which
generally requires reappraisal of property whenever a change in
ownership occurs or property is newly constructed.
   (f) The tax rates or the dollar amounts of taxes levied by each
revenue district and taxing agency on the property covered by the tax
bill.
   (g) All of the following:
   (1) Information specifying that if the taxpayer disagrees with a
change in the assessed value as shown on the tax bill, the taxpayer
has the right to an informal assessment review by contacting the
assessor's office.
   (2) (A) Except as provided in subparagraph (B), information
specifying that if the taxpayer and the assessor are unable to agree
on proper assessed value pursuant to an informal assessment review,
the taxpayer has the right to file an application for reduction in
assessment for the following year with the county board of
equalization or the assessment appeals board, as applicable, during
the period from July 2 to September 15, inclusive.
   (B) For counties in which the board of supervisors has adopted the
provisions of subdivision (c) of Section 1605, information advising
that the assessee has a right to appeal the supplemental assessment,
and that the appeal is required to be filed within 60 days of the
date of the mailing or electronic transmittal of the tax bill.  For
the purposes of equalization proceedings, the supplemental assessment
shall be considered an assessment made outside of the regular
assessment period as provided in Section 1605.
   (3) The address of the clerk of the county board of equalization
or the assessment appeals board, as applicable, at which forms for an
application for reduction may be obtained.
  SEC. 8.  Section 168.5 is added to the Revenue and Taxation Code,
to read:
   168.5.  Any document required in this division to be acknowledged
by the county clerk at no charge may be acknowledged by a notary
public or other county official pursuant to Section 1181 of the Civil
Code, at no charge.
  SEC. 9.  Section 237 is added to the Revenue and Taxation Code, to
read:
   237.  (a) Property owned and operated by a federally designated
Indian tribe or its tribally designated housing entity is not subject
to taxation under this part if the property and entity meet the
following requirements:
   (1) The property is used exclusively and solely for the charitable
purpose of providing rental housing and related facilities for
tenants who are persons of low income (as defined in Section 50093 of
the Health and Safety Code).
   (2) The housing entity is nonprofit.
   (3) No part of the net earnings of the housing entity inure to the
benefit of any private shareholder or individual.
   (b) In lieu of the tax imposed by this part, a tribe or tribally
designated housing entity may agree to make payments to a county,
city, city and county, or political subdivision of the state for
providing services, improvements, or facilities by that entity for
the benefit of a low-income housing project owned and operated by the
tribe or tribally designated housing entity.  Any payments in lieu
of tax may not exceed the estimated cost to the city, county, city
and county, or political subdivision of the state of the services,
improvements, or facilities to be provided.
   (c) A tribe or tribally designated housing entity applying for an
exemption under this section shall provide the following documents to
the assessor:
   (1) Documents establishing that the designating tribe is federally
recognized.
   (2) Documents establishing that the housing entity has been
designed by the tribe.
   (3) Documents establishing that there is a deed restriction,
agreement, or other legally binding document restricting the property'
s use to low-income housing and that provides that the property's
housing units are continuously available to or occupied by persons
who are low income, as defined by Section 50093 of the Health and
Safety Code, at rents that do not exceed those prescribed by Section
50053 of the Health and Safety Code, or, to the extent that the terms
of federal, state, or local financing or financial assistance
conflict with that section, rents that do not exceed those prescribed
by the terms of the financing agreements
                        or financial assistance agreements.
  SEC. 10.  Section 402.9 of the Revenue and Taxation Code is amended
to read:
   402.9.  In valuing property for persons of low and moderate income
that is financed under Section 236 or Section 515 of the federal
National Housing Act, since federal restrictions accompanying these
programs substantially affect actual income and expenses of the
property owner, the assessor shall not consider as income any
interest subsidy payments made to a lender on that property by the
federal government.
  SEC. 11.  Section 531.2 of the Revenue and Taxation Code is amended
to read:
   531.2.  (a) When the property is real property which subsequent to
July 1 of the year of escape for purposes of this article, or
subsequent to July 1 of the year in which the property should have
been lawfully assessed, for purposes of Article 3 (commencing with
Section 501), but prior to the date of that assessment and the
showing thereof on the secured roll, with the date of entry specified
thereon, has (1) been transferred or conveyed to a bona fide
purchaser for value, or (2) become subject to a lien of a bona fide
encumbrance for value, the escape assessment pursuant to either of
these articles shall not create or impose a lien or charge on that
real property, but shall be entered on the unsecured roll in the name
of the person who would have been the assessee in the year in which
it escaped assessment and shall thereafter be treated and collected
like other taxes on that roll.  The tax rate applicable shall be the
secured tax rate of the year in which the property escaped
assessment.
   (b) If the real property escaped assessment as a result of an
unrecorded change in ownership or change in control for which a
change in ownership statement required by Section 480, 480.1, or
480.2, or a preliminary change in ownership report, pursuant to
Section 480.3, is not filed, the assessor shall appraise the property
as of the date of transfer and enroll the difference in taxable
value for each of the subsequent years on the secured roll, with the
date of entry specified thereon.  However, if prior to the date of
the assessment the property has (1) been transferred or conveyed to a
bona fide purchaser for value, or (2) become subject to a lien of a
bona fide encumbrance for value, the escape assessment pursuant to
this paragraph shall not create or impose a lien or charge on that
real property, but shall be entered on the unsecured roll in the name
of the person who would have been the assessee in the year in which
it escaped assessment and shall thereafter be treated and collected
like other taxes on that roll.  The tax rate applicable shall be the
secured rate of the year in which the property escaped assessment.
"Assessment year" means the period defined in Section 118.
   In the event of a failure to file a change in ownership statement
required by Section 480, 480.1, or 480.2, or a preliminary change in
ownership report, pursuant to Section 480.3, the interest provided in
Section 506 may, by the order of the board of supervisors, be added.

   (c) (1) Taxes resulting from escape assessments shall be prorated
pursuant to paragraphs (2) to (5), inclusive, only if the board of
supervisors of a county has adopted a resolution specifying that
taxes shall be prorated pursuant to this subdivision.
   (2) When real property has been transferred or conveyed to a bona
fide purchaser for value subsequent to July 1 of the year of escape
for purposes of this article, or subsequent to July 1 of the year in
which the property should have been lawfully assessed, for purposes
of Article 3 (commencing with Section 501), taxes resulting from
escape assessments pursuant to this section shall be prorated between
the following:
   (A) The person who would have been the assessee if the change in
ownership had not occurred.
   (B) The person who purchased the property.
   (3) If the real property has been transferred or conveyed to a
bona fide purchaser for value more than once during the year of
escape or assessment, each owner of record during that period shall
be liable for a pro rata share of taxes based on the length of time
during that period each bona fide purchaser was the record owner of
that real property.
   (4) When the assessor has identified the fact and amount of the
escape assessment, the assessor shall identify the owners of record
during the year of escape or assessment and the dates of ownership
for each owner.
   (5) The auditor shall compute the respective prorated shares of
taxes for each owner of record.  The share of taxes of the current
owner of the real property shall be placed on the secured roll as a
lien on the parcel for which the escaped assessment was discovered.
The share of taxes of any previous owner during the year of escape or
assessment shall be entered on the unsecured roll.
  SEC. 12.  Section 531.8 of the Revenue and Taxation Code is amended
to read:
   531.8.  No escape assessment shall be enrolled under this article
before 10 days after the assessor has mailed or otherwise delivered
to the affected taxpayer a "Notice of Proposed Escape Assessment"
with respect to one or more specified tax years.  The notice shall
prominently display on its face the following heading:
      "NOTICE OF PROPOSED ESCAPE ASSESSMENT"

   The notice shall contain all of the following:
   (a) The amount of the proposed escape assessments for each tax
year at issue.
   (b) The name and telephone number of a person at the assessor's
office who is knowledgeable with respect to the proposed escape
assessment or assessments and may be contacted with any questions
with respect to the proposed assessment or assessments.
  SEC. 13.  Section 602 of the Revenue and Taxation Code is amended
to read:
   602.  This local roll shall show:
   (a) The name and address, if known, of the assessee.  The assessor
is not required to maintain electronic mail addresses.
   (b) Land, by legal description.
   (c) A description of possessory interests sufficient to identify
them.
   (d) Personal property.  A failure to enumerate personal property
in detail does not invalidate the assessment.
   (e) The assessed value of real estate, except improvements.
   (f) The assessed value of improvements on the real estate.
   (g) The assessed value of improvements assessed to any person
other than the owner of the land.
   (h) The assessed value of possessory interests.
   (i) The assessed value of personal property, other than
intangibles.
   (j) The revenue district in which each piece of property assessed
is situated.
   (k) The total taxable value of all property assessed, exclusive of
intangibles.
   (l) Any other things required by the board.
  SEC. 14.  Section 1612.5 is added to the Revenue and Taxation Code,
to read:
   1612.5.  No current employee of the office of the clerk of the
county board of equalization or assessment appeals board may
represent an applicant for compensation on any application for
equalization filed pursuant to Section 1603.
  SEC. 15.  Section 1612.7 is added to the Revenue and Taxation Code,
to read:
   1612.7.  An employee of the clerk of the assessment appeals board
shall notify the clerk immediately upon filing an application on his
or her own behalf, or upon his or her decision to represent his or
her spouse, parent, or child in an assessment appeal.  The
application shall be heard in accordance with the provisions of
Section 1622.6.
  SEC. 16.  Section 1622.6 of the Revenue and Taxation Code is
amended to read:
   1622.6.  An application for equalization filed pursuant to Section
1603 by a member or alternate member of an assessment appeals board,
or an application in which that member represents his or her spouse,
parent, or child, shall be heard before an assessment appeals board
panel consisting of three special alternate assessment appeals board
members appointed by order of the presiding judge of the superior
court in the county in which the application is filed.
   A member or alternate member of an assessment appeals board shall
notify the clerk immediately upon filing an application on his or her
own behalf, or upon his or her decision to represent his or her
spouse, parent, or child in an assessment appeal matter.  A special
alternate assessment appeals board member may hear only the
application or applications for equalization set forth in the
superior court order appointing the member.
   Any person shall be eligible for appointment as a special
alternate assessment appeals board member who meets the
qualifications set forth in Section 1624.
   Sections 1624.1 and 1624.2 shall be applicable to the appointment
of a special assessment appeals board member.
  SEC. 17.  Section 1624 of the Revenue and Taxation Code is amended
to read:
   1624.  (a) A person shall not be eligible for nomination for
membership on an assessment appeals board unless he or she has a
minimum of five years' professional experience in this state as one
of the following:  certified public accountant or public accountant,
licensed real estate broker, attorney, property appraiser accredited
by a nationally recognized professional organization, property
appraiser certified by the Office of Real Estate Appraisers, or is a
person who the nominating member of the board of supervisors has
reason to believe is possessed of competent knowledge of property
appraisal and taxation.
   (b) This section shall become operative on January 1, 1996.
  SEC. 18.  Section 1624.05 of the Revenue and Taxation Code is
amended to read:
   1624.05.  (a) A person shall not be eligible for nomination for
membership on an assessment appeals board unless he or she has a
minimum of five years' professional experience in this state as one
of the following:  certified public accountant or public accountant,
licensed real estate broker, attorney, or property appraiser
accredited by a nationally recognized professional organization, or
property appraiser certified by the Office of Real Estate Appraisers.

   (b) This section shall apply only to an assessment appeals board
in a county with a population of 1,000,000 or more.
   (c) County population estimates conducted by the Department of
Finance pursuant to Section 13073.5 of the Government Code shall be
used in determining the population of a county for purposes of this
section.
  SEC. 19.  Section 1624.3 is added to the Revenue and Taxation Code,
to read:
   1624.3.  No current member of an assessment appeals board, nor any
alternate member, may represent an applicant for compensation on any
application for equalization filed pursuant to Section 1603 in the
county in which the board member or alternate member serves.
  SEC. 20.  Section 1636.2 is added to the Revenue and Taxation Code,
to read:
   1636.2.  No current hearing officer may represent an applicant for
compensation on any application for equalization filed pursuant to
Section 1603 in the county in which the hearing officer serves.
  SEC. 21.  Section 1636.5 is added to the Revenue and Taxation Code,
to read:
   1636.5.  (a) An assessment hearing officer shall notify the clerk
immediately upon filing an application on his or her own behalf, or
upon his or her decision to represent his or her spouse, parent, or
child in an assessment appeal.
   (b) When the application described in subdivision (a) is scheduled
for hearing, the clerk shall schedule the matter before an alternate
assessment appeals board pursuant to the provisions of Section
1622.6.
  SEC. 22.  Section 2512 of the Revenue and Taxation Code is amended
to read:
   2512.  If a remittance to cover a payment required by law to be
made to a taxing agency prior to a specified date and hour is (a)
deposited in the United States mail in a sealed envelope, properly
addressed with the required postage prepaid, or (b) deposited for
shipment with an independent delivery service that is an Internal
Revenue Service designated delivery service or has been approved by
the tax collector in a sealed envelope or package, properly addressed
with the required fee prepaid, delivery of which shall not be later
than 5 p.m. on the next business day after the effective delinquent
date, the remittance shall be deemed received on the date shown by
the post office cancellation mark stamped upon the envelope
containing the remittance, or the independent delivery service
shipment date shown on the packing slip or air bill attached to the
outside of the envelope or package containing the remittance, or on
the date it was mailed if proof satisfactory to the tax collector
establishes that the mailing occurred on an earlier date.  The taxing
agency is not required to accept such a payment actually received in
the mail if it is received more than 30 days after the date and time
set by law for the payment.  This section shall not, for purposes of
applying subdivision (a) of Section 3707, apply to a remittance sent
by mail or by independent delivery service for the redemption of
tax-defaulted property.
  SEC. 23.  Section 2610.5 of the Revenue and Taxation Code is
amended to read:
   2610.5.  Annually, on or before November 1, the tax collector
shall mail or electronically transmit a county tax bill or a copy
thereof for every property on the secured roll.  This requirement
need not be met where no taxes are due.  Failure to receive a tax
bill  shall not relieve the lien of taxes, nor shall it prevent the
imposition of penalties imposed by this code. However, the penalty
imposed for delinquent taxes as provided by any section of this code
shall be canceled if the assessee or fee owner demonstrates to the
tax collector that delinquency is due to the tax collector's failure
to mail or electronically transmit the tax bill to the address
provided on the tax roll or electronic address provided and
authorized by the taxpayer to the tax collector.  Penalties imposed
may be canceled if the board of supervisors, upon recommendation of
the tax collector, has authorized the tax collector to establish, and
the tax collector has so established, specific procedures for the
consideration of penalty cancellations.  Those procedures may provide
that penalties imposed may be canceled by resolution of the county
board of supervisors upon the recommendation of the tax collector if
the assessees or fee owners demonstrate to the tax collector that the
delinquency is due to the county's failure to send a notice of taxes
to the owner of property acquired after the lien date on the secured
roll, provided payment of the amount of taxes due, minus any
penalties and costs, is made no later than June 30 of the fiscal year
in which the property owner is named as the assessee for taxes
coming due.
   With respect to a late, amended, or corrected tax bill, the
penalties imposed for delinquent taxes shall be canceled if the tax
amount is paid within 30 days following the date that bill is mailed
or electronically transmitted.
   Under no circumstance shall a taxpayer have fewer than 30 days to
pay without  penalty.
  SEC. 24.  Section 2613 of the Revenue and Taxation Code is amended
to read:
   2613.  All taxes on the secured roll shall be paid at the tax
collector's office unless the board of supervisors, upon
recommendation of the tax collector and on or before the day when
payments may be made, orders that taxes be collected in any other or
additional location with the county.
  SEC. 25.  Section 2910.1 of the Revenue and Taxation Code is
amended to read:
   2910.1.  The tax collector may, no later than 30 days prior to the
date on which taxes are delinquent and as soon as reasonably
possible after receipt of the extended assessment roll, mail or
electronically transmit a tax bill for every assessment on the
unsecured roll on which taxes are due, unless the total tax bill
amount due is too small to justify the cost of collection. Failure to
receive a tax bill shall not relieve the lien of taxes, nor shall it
prevent the imposition of penalties imposed by this code.  However,
the penalty imposed for delinquent taxes as provided by any section
in this code shall be canceled if the assessee convinces the tax
collector that he or she did not receive the tax bill mailed to the
address provided on the roll or electronic address provided and
authorized by the taxpayer to the tax collector.
  SEC. 26.  Section 3437 of the Revenue and Taxation Code is amended
to read:
   3437.  The amount due on any property may be paid until the  close
of business on June 30 if it was separately valued on the secured
roll.  If June 30 falls on a Saturday, Sunday, or legal holiday, and
payment is received by the close of business on the next business
day, redemption penalties shall not attach.  If the board of
supervisors, by adoption of an ordinance or resolution, closes the
county's offices for business prior to the time of delinquency on the
"next business day" or for that whole day, that day shall be
considered a legal holiday for purposes of this section.  Section
2512 shall apply to remittances made by mail.
  SEC. 27.  Section 3440 of the Revenue and Taxation Code is
repealed.
  SEC. 28.  Section 3692 of the Revenue and Taxation Code is amended
to read:
   3692.  (a) The tax collector shall attempt to sell tax-defaulted
property as provided in this chapter within four years of the time
that the property becomes subject to sale for nonpayment of taxes
unless by other provisions of law the property is not subject to
sale.  If there are no acceptable bids at the attempted sale, the tax
collector shall attempt to sell the property at intervals of no more
than six years until the property is sold.
   (b) When oil, gas, or mineral rights are subject to sale for
nonpayment of taxes, the tax collector may offer the interest at
minimum bid to the holders of outstanding interests where the
interest subject to sale is a partial interest or, where the interest
subject to sale is a complete and undivided interest, to the owner
or owners of the property to which the oil, gas, or mineral rights
are appurtenant.
   (c) When parcels that are rendered unusable by their size,
location, or other conditions are subject to sale for nonpayment of
taxes, the tax collector may offer the parcel at a minimum bid to
owners of contiguous parcels.  The tax collector shall require that
the successful bidder request the assessor and the planning director
to combine the unusable parcel with his or her own parcel as a
condition of sale.
   (d) Sealed bid sale procedures shall be used when offers are made
pursuant to subdivision (b) or (c), and the property shall be sold to
the highest eligible bidder.  The offers shall remain in effect for
30 days or until notice is given pursuant to Section 3702, whichever
is later.
   (e) The Notice of Power to Sell Tax-Defaulted Property, Notice of
Power and Intent to Sell Tax-Defaulted Property, Notice to the Board
of Supervisors, and Notice of Intended Sale of Tax-Defaulted Property
shall indicate that any parcel remaining unsold may be resold within
a 90-day period and any new parties of interest shall be notified in
accordance with Section 3701.  This subdivision shall not apply to
properties sold pursuant to Chapter 8 (commencing with Section 3771).

  SEC. 29.  Section 4222.5 of the Revenue and Taxation Code is
amended to read:
   4222.5.  (a) Notwithstanding any other provision of this article,
the tax collector of any county that is designated by the Governor to
be in a state of emergency or disaster due to a major misfortune or
calamity and is therefore an eligible county for tax relief, as
defined in Chapter 5 (commencing with Section 194) of Part 2, may
defer for a period of one year payments under an installment plan if
all of the following conditions are met:
   (1) The installment plan was already in existence at the time
deferral is requested by the assessee or the agent of the assessee.
   (2) The assessee or the agent of the assessee can establish to the
satisfaction of the tax collector that the assessee incurred
substantial disaster damage as defined in Section 194 in  connection
with his or her property as a result of the disaster.
   (3) The assessee or the agent of the assessee files an application
for deferral with the tax collector on or before September 1 of the
following fiscal year.
   (4) The assessee is not receiving any other relief relating to the
disaster.
   (b) This section does not preclude the assessment of interest in
connection with the deferral of any installment payment.  Any
interest so assessed shall be due and payable together with the
deferred installment payment.
   (c) For purposes of this section, "substantial business losses"
means net business losses incurred by the assessee after accounting
for the assessee's receipt of any federal disaster aid, state
disaster aid, related insurance loss claim payments, or property tax
relief under Chapter 5 (commencing with Section 194) of Part 2.
  SEC. 30.  Section 4837.5 of the Revenue and Taxation Code is
amended to read:
   4837.5.  (a) Notwithstanding any other provision of law, taxes
due, whether secured or unsecured, on escape assessments for prior
fiscal years may be paid over a four-year period at the option of the
assessee if:  (1) the additional tax is over five hundred dollars
($500), and (2) a written request for installment payment is filed by
the assessee with the tax collector prior to the time the second
installment of taxes on the secured roll becomes delinquent, or by
the last day of the month following the month in which the tax bill
is mailed, whichever is later.  The tax collector shall include with
the property tax bill a notice of the payment provisions of this
section.  For unsecured taxes, the written request for installment
payment shall be filed with the tax collector prior to the date on
which those taxes become delinquent.
   (b) If payment by installments is requested, 20 percent or more of
the tax shall be paid no later than the deadline for filing the
written request.  The current taxes and prior year taxes with
penalties and costs thereon shall be paid with or prior to the
initial installment payment.  In each succeeding fiscal year, the
assessee shall pay, before the delinquency date of the second
installment of current taxes on the secured roll, all current year
taxes, and a sum at least sufficient to reduce the outstanding
balance of the tax by 20 percent of the original amount.  In the case
of unsecured taxes, the required annual installment shall be paid on
or before August 31.
   (c) Interest at the rate of three-fourths of 1 percent per month,
starting with the month following the date of the deadline for filing
the written request, shall be applied to the outstanding balance, on
the first day of the month, if the escape or underassessment was
due, in whole or in part, to the error, omission, or other fault of
the assessee.  If the first day of any month falls on a Saturday,
Sunday, or legal holiday, the next additional three-fourths of one
percent of interest shall be applied to the outstanding balance on
the next business day.
   (d) No additional penalties shall be charged as long as
installment payments are made timely; and, in the case of secured
taxes, as long as all payments are made timely, an affidavit
regarding the property shall not be published pursuant to Section
3371.
   (e) If any installment is not paid timely, or if the property on
the secured roll becomes tax defaulted, or if the property changes
ownership, or if taxes for the property on the unsecured roll are not
paid before becoming delinquent, the balance of the tax remaining to
be paid shall immediately become due and payable, and no further
installment payments for that escape assessment or correction shall
be authorized.  The tax collector shall inform the auditor of the
defaulted, off-roll installment plan and of the delinquent amount
remaining unpaid.  With regard to property on the secured roll that
has not become tax defaulted, or property on the unsecured roll that
has not become delinquent, in the event the payment is missed at the
time the second or subsequent installment is due and the assessee or
agent of the assessee can, by substantial evidence, convince the tax
collector that the payment was not made through any fault of the
assessee, the tax collector may reinstate the account upon receipt of
a payment in an amount reflecting the installment plus interest
under subdivision (c) to the date of reinstatement, provided that the
payment is physically received by the tax collector prior to the
time the property becomes tax defaulted or prior to June 30 of the
current fiscal year, whichever occurs earlier.
   (f) The auditor shall add the unpaid balance, plus all penalties
and costs thereon, to the current roll, adjust the tax collector's
charge accordingly, and the remaining balance of the tax shall become
subject to all of the provisions of this division applicable to
delinquent taxes.
   (g) The tax collector shall maintain records listing the current
status of all the installment accounts authorized under this section.
  The status of each installment account shall be entered on the
current roll and the tax collector may file for record with the
county recorder a certificate pursuant to Section 2191.3.
   (h) When the installment account is paid in full before 5 p.m. on
June 30 of the year in which the account has become defaulted and the
tax collector has filed for record a certificate of lien, the tax
collector shall also file for record a release of that lien.  Where
the account is not paid in full until after June 30 of the year in
which the account became defaulted, the filings of the certificates
of lien and release of lien shall be subject to recording fees
charged to the taxpayer.
   (i) The tax collector may establish a fee for the actual cost of
processing a request to pay escaped assessments in installments.
  SEC. 31.  Section 4985 of the Revenue and Taxation Code is amended
to read:
   4985.  Any delinquent penalty, cost, redemption penalty, interest,
or redemption fee, heretofore or hereafter attached, shall upon
satisfactory proof submitted by the tax collector, the auditor, or
the assessor, be canceled by the auditor upon a showing that the
delinquent penalty, cost, redemption penalty, interest, or redemption
fee has attached because of either of the following:
   (a) An error of the tax collector, the auditor, or the assessor.
   (b)  They were unable to complete valid procedures initiated prior
to the delinquency date.  The collection shall be made upon the
further showing that payment of the corrected or additional amount
was made within 30 days from the date that the
                           correction was entered on the roll or
abstract record.
  SEC. 32.  Section 8877 of the Revenue and Taxation Code is amended
to read:
   8877.  If the board finds that a person's failure to make a timely
return or payment is due to reasonable cause and circumstances
beyond the person's control, and occurred notwithstanding the
exercise of ordinary care and the absence of willful neglect, the
person may be relieved of the penalty provided by Sections 8801,
8854, and 8876.
   Any person seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which he or she bases his or her claim for relief.
  SEC. 33.  Section 30103.5 of the Revenue and Taxation Code is
amended to read:
   30103.5.  (a) The tax and surcharge imposed by this part shall not
apply to the sale or transfer of untaxed cigarettes or tobacco
products to a law enforcement agency for use in a criminal
investigation when that sale or transfer is authorized by the board.

   (b) A law enforcement agency authorized by the board to receive or
purchase cigarettes or tobacco products as provided in subdivision
(a) shall not be required to apply for, or obtain, a license as a
distributor pursuant to Section 30140.
   (c) A law enforcement agency making distributions of cigarettes
and tobacco products received or purchased under subdivision (a) is
not required to collect or remit the tax or surcharge imposed by this
part with respect to those authorized distributions.
  SEC. 34.  Section 30103.5 of the Revenue and Taxation Code is
amended to read:
   30103.5.  (a) The tax and surcharge imposed by this part shall not
apply to the sale or transfer of untaxed cigarettes or tobacco
products to a law enforcement agency for use in a criminal
investigation when that sale or transfer is authorized by the board.

   (b) A law enforcement agency authorized by the board to receive or
purchase cigarettes or tobacco products as provided in subdivision
(a) shall not be required to apply for, or obtain, a license as a
distributor pursuant to Section 30140.
   (c) A law enforcement agency making distributions of cigarettes
and tobacco products received or purchased under subdivision (a) is
not required to collect or remit the tax or surcharge imposed by this
part with respect to those authorized distributions.
  SEC. 35.  Section 30188 of the Revenue and Taxation Code is amended
to read:
   30188.  On or before the 25th day of each month, every wholesaler
shall file on forms prescribed by the board a report respecting his
inventory, purchases, and sales of cigarettes or tobacco products
during the preceding month and such other information as the board
may require to carry out the purposes of this part.
  SEC. 36.  Section 30436 of the Revenue and Taxation Code is amended
to read:
   30436.  The following property, upon seizure by the board, is
hereby forfeited to the State of California:
   (a) Cigarettes or tobacco products transported upon the highways,
roads or streets of this state in violation of the provisions of
Section 30431 or Section 30432.
   (b) Cigarettes not contained in packages to which are affixed
California cigarette tax stamp or meter impressions or tobacco
products upon which the tobacco products surtax has not been paid,
which are offered for sale, possessed, kept, stored or owned by any
person with the intent of the person to sell the cigarettes or
tobacco products without payment of the taxes imposed by this part.
   (c) Any cigarette or tobacco product vending machine, together
with the cigarettes, tobacco products, money or other contents
thereof, which has been loaded in whole or in part with packages of
cigarettes which do not have California cigarette tax stamps or meter
impressions affixed or tobacco products upon which the tobacco
products surtax has not been paid.
   (d) Cigarettes contained in packages to which are affixed
California cigarette tax stamps or meter impressions in violation of
Section 30163.
  SEC. 37.  Section 38631 of the Revenue and Taxation Code is amended
to read:
   38631.  If any amount has been illegally determined either by the
person filing the return or by the board, the board shall set forth
that fact in its records, certify the amount determined to be in
excess of the amount legally due and the person against whom the
determination was made, and authorize the cancellation of the amount
upon the records of the board.  Any proposed determination by the
board pursuant to this section with respect to an amount in excess of
fifty thousand dollars ($50,000) shall be available as a public
record for at least 10 days prior to the effective date of that
determination.
  SEC. 38.  Section 43010.1 of the Revenue and Taxation Code is
amended to read:
   43010.1.  Notwithstanding Section 43010, for purposes of the fees
administered under Sections 43056 and 43057, "department" means the
State Department of Health Services.
  SEC. 39.  Section 43011.1 of the Revenue and Taxation Code is
amended to read:
   43011.1.  Notwithstanding Section 43011, for purposes of the fees
administered under Sections 43056 and 43057, "director" means the
State Director of Health Services.
  SEC. 40.  Section 50159 of the Revenue and Taxation Code is amended
to read:
   50159.  (a) The board shall provide any information obtained under
this part to the State Water Resources Control Board, including any
information regarding underground storage tanks containing petroleum.

   (b) The State Water Resources Control Board and the board may
utilize any information obtained pursuant to this part to develop
data on underground storage tanks containing petroleum within the
state.  Notwithstanding Section 50161, the State Water Resources
Control Board may make this underground storage tank data available
to the public.
   (c) The board may disclose otherwise confidential information
obtained from the lessee or operator of an underground storage tank,
or from the person who sold or provided petroleum to the lessee or
operator of the underground storage tank, only to the fee payer and
only to the extent that this information is necessary for assessment,
administration, and verification of the underground storage tank
fee.
  SEC. 41.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
